Amazon is preparing to strengthen its home security efforts via the buyout of Ring, the company responsible for making various smart home items including the well-known Ring Video Doorbell, as well as other more recently showcased products like the Stickup Cam and its Home Alarm Security system. This acquisition will position Amazon to better compete against Google and Nest, who are not only large competitors for Amazon in the smart home market but specifically in the home security sector of it. While Google has Nest and the company's new home security system, Amazon has thus far only started wading into the home security sector with the Cloud Cam. With Ring under its umbrella though, it'll be able to better compete by offering similar products.
According to the report Amazon will be buying Ring for around $1 Billion though this has yet to be confirmed by Amazon or Ring, and Amazon may not even end up disclosing the monetary terms of the buyout. That said, Amazon and Ring are expected to announce the acquisition officially at some point today, though it's unclear when exactly that will be. Even still, a spokesperson for Ring is said to have already commented on the matter of the buyout, stating that the company will be "looking forward" to working with Amazon and being a part of its team due to it feeling like it can achieve more in the home security space with Amazon at the helm.
This acquisition also give Amazon some benefits as it affords the retail giant an easy foot in the door of home security without having to actually manufacture the products. In addition, it opens the door for more integration with its Alexa digital assistant as future Ring products could be produced with Alexa built-in, or at the very least have more integration than before. It could also afford Amazon the ability to expand the compatibility of its Amazon Key service, which lets Prime Members provide access to package delivery employees and more to their homes by way of smart, connected locks. The buyout makes sense and may be unsurprising considering Amazon was already investing in Ring through its Alexa Fund.